1. Israel is making a mistake by performing unequal hostage swaps. They exchanged 5 militant Lebanese prisoners for the remains of 2 Israeli soldiers. I know it is their moral code, but this will only encourage more kidnappings/killings of Israelis. They keep giving their enemies positive reinforcement with these exchanges. Dumb.
2. Double-standard on the N-word. I hate it. Read the story. Again, Jesse Jackson deserves no respect by the media or the population at large.
3. Score one for Dr. Aktins (and the Mediterraneans), as the low-carb (high-fat high-protein) and Mediterranean diets were found to be superior for weight loss to a low-fat diet after 2 years of follow-up.
4. The JibJab crew has another great political satire video. Very funny, as usual.
5. The price of oil fell sharply for the 2nd straight day. Jury is still out whether the long-term trend is still intact and this is a correction (just as all of the other commodities have corrected signficantly over the past few weeks). Also, few, if any, stories tied this week's decline to Bush's wonderful announcement about moving forward with plans to drill offshore. In fact, given the drop in consumption (driving and flying have decreased, companies are figuring out more efficient ways to transport goods), it may be that the decreased demand has increased supply, thus decreasing the price of oil. Furthermore, the continued panic about further economic downturns in the US and around the world is not bullish for the price of oil. The prices of oil are also driven by the large amount of ETFs that are tied to commodities. Investors looking for a safe-haven in this bear market that has ravished the financial sector have moved lots of money to energy stocks/ETFs. However, as witnessed by the monster rally in the stock market today, led by the 10% surge in financials, it appears that sector rotation is taking place, and money is shifting back from energy to financials. I wonder, did Bush's announcement of drilling offshore also fuel the rally in the financial sector today.
Also, let's look at the chart of the XLE (iShares Energy ETF). From a technical analysis standpoint, energy has been weakening for the past several weeks. The chart was calling for this sell-off. Why?
1. RSI at top of chart has been very weak.
2. Double top formed in main price action
3. MACD (another momentum indicator) has been very weak/declining for weeks.
4. Money flow indicators (On balance volume and Chalkin money flow, both at bottom of chart) indicate that net flow of money has been OUT of energy since the end of May/early June.
So, the announcement by Bush to drill offshore was like punching a man while he was already beaten up and laying on the ground bleeding. Of course, people are going to give him the credit for dropping the price of oil. The timing and the chart do NOT support this whatsoever.